Be sure to ask your representative about the company offering any policy you are considering. Quality customer service and financial stability are essential. When you end up needing the insurance, the last thing you want to discover is that the company is hard to deal with or that their financial condition prevents them from providing the benefits you paid for.
If the policy you’re looking at is designed to pay off your mortgage if you die, life insurance may be the best value. It is affordable enough that almost everyone can fit it into their budget, and the payout can ultimately be used to either pay off a mortgage or for any other needs your loved ones will have when you cannot provide for them any longer.
Most individuals have some form of insurance, whether it is for their vehicle, home or health.
It is important, however, not to overlook the benefits of life insurance, which is a policy that pays money to beneficiaries when the person who is insured by the plan dies. Typically, the insured person makes payments into the plan – called premiums – in exchange for a “death benefit,” the money that is paid at the time of death. Many people purchase life insurance for the purpose of providing for your dependents in the event of your death, thus protecting your existing stream of income for them after you die. If you are in the protection category you may want to consider life insurance, which offers only a death benefit for a specified period of time such as 10 or 20 years. In addition, you can typically purchase substantial coverage at affordable premiums due to the limited time of protection.
Some people are reluctant to consider term insurance because they see the premiums they pay as “lost” or “wasted” if they survive beyond the life of the policy. But now, a relatively new product has some pros telling their clients to invest in a new kind of term insurance.
Here’s why: The insurance industry, which sees the return of premium riders as a great marketing tool for selling term policies, is pricing the riders so that they actually earn a reasonably high rate of return — if a client hangs on to the policy for its entire term. Independent analysis of some plans has determined that young healthy clients can earn about 7 percent, tax-free, on the extra premium that they pay for a 30-year policy.